71 Thanks To AI-Assisted Creation, Gamers Could Become Developers AI-assisted game creation on user-generated content (UGC) platforms could cause an explosion in gaming content. According to our research, after normalizing for output quality, the cost of generating a single 3D asset has dropped ~99% at an annual rate to less than $0.06 since 2021. AI should democratize content creation and accelerate the growth in UGC. Roblox already has delivered more than ~470 million experiences globally, 52x the combined number of PC, console, and mobile app games. S Cost Decline In Generative AI For 3D Assets* Number Of Video Game Releases R Traditional Games Mobile Games Roblox Experiences E M $1,000 U $1E+03 S >99% 109 N t Annualized r 1.E+03 e $100 e CO $1E+02 8 Generative AI lowers the s 1.E+02 L As Cost Decline b 10 A m ) cost of UGC. T u e 107 I D ) $10 l1.E+01 G 3 $1E+01 N a le r a e c 6 Atari e c 1.E+00 DI p S iv S 10 t g introduces the t g $1 a o s $1E+00 5 l 1.E-01 o (Lo u (L 10 Atari 2600. C m 4 1.E-02 ar u 10 l $0.1 Apple launches l $1E-01 C o 103 D 1.E-03 the first iPhone. 102 $1$0E-.0021 1.E-04 Oct-21 Feb-22 May-22 Aug-22 Dec-22 Mar-23 1975 '78 '81 '84 '87 '90 '93 '96 '99 '02 '05 '08 '11 '14 '17 '20 '22 Date of Publication *We normalize the cost of 3D asset generation by each model’s CLIP R-Precision scores. Sources: ARK Investment Management LLC, 2024. This ARK analysis is based on a range of underlying data from external sources, including Nichol et al. 2022, which may be provided upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.